TaxTMI 
TaxTMI 
2009 (1) TMI 228
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....ndents received Old Transformers for repair. In the course of repair, they had to replace the coils, which are very essential for transformers. The case of the Department is that while repairing the old transformers, the coil emerges as a manufactured product. Hence, the respondents have to discharge the duty liability. This is mainly the case of the Revenue. The case was adjudicated by the learned Commissioner and the learned Commissioner, relying on several case-laws, came to the conclusion that there is no duty liability. In the Show Cause Notice, it is seen that the longer period had been invoked alleging suppression of facts, etc. However, the learned Adjudicating Authority has stated that there is no case for invoking the longer perio....
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.... existence as a part of transformer for the reason that the wire is wound round the coil of the transformer is not correct. The process of manufacture has been detailed in the party's reply and also summarized in Para 8 of the O-I-O. The aluminium wires are covered with kraft papers and wound into several layers depending upon the capacity of the transformers. Therefore, it can be seen that an entirely different product from its basic form emerges. This is the main argument of the Revenue. (iv) The Settlement Commission, Chennai, in the case of M/s. Yasoda Electricals vide its order No. 35/2004, had taken on record the evidence furnished by the DGCEI regarding the sale of HT/LT Coils by M/s. Associated Electrical to M/s. NGEF and held th....
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....nd penalty-Coils, LV/HV, made from duty paid double paper covered (DPC) wire, and used in repairs of old transformers-Not goods-A new marketable product not having emerged, no manufacture involved-Central Excise duty cannot be changed second time on DPC wires when they are used in repair of old transformers as coils-However, Modvat credit if availed on wire under erstwhile Rule 57A of Central Excise Rules, 1944 to be reversed-No penalty imposable in the circumstances-Sections 2(d), 2(f) and 3 of Central Excise Act, 1944-Erstwhile Rules 57F(1), 57-I and Rule 173 ibid. 3. East India Transformer & Switch Gear Pvt. Ltd. v. CCE, Merrut - 1997 (92) E.L.T. 449 (S.C.) Dutiability-Duty paid parts purchased from market and used in repair of ....
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....able goods-'Produced or manufactured'-Goods specified in Tariff Schedule though were excisable goods yet dutiable only if produced or manufactured by assessee and marketable-Sections 2(d), 2(f) and 3 of Central Excises and Salt Act, 1944. Dutiability-Intermediate goods produced and used for captive consumption not liable to duty if not marketable, not withstanding the fact of their being specified in Tariff Schedule and retrospective amendment of Rules 9 and 49 of Central Excise Rules, 1944-Sections 2(d), 2(f) and 3 of Central Excises and Salt Act, 1944. 'Manufacture' or 'Production' means bringing out a new commodity which must be useable, moveable, saleable and marketable-Sections 2(f) and 3 of Central Excises and Salt Act, 1944. ....
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....is of no consequence-Department's appeal dismissed-Sections 2(d) and 3 of Central Excise Act, 1944. 8. Union of India v. Delhi Cloth & General Mills Co. Ltd. - 1997 (92) E.L.T. 315 (S.C.) Calcium carbide tapped from the furnace in the liquid form and used within the factory in the manufacture of Acetylene gas not being of a purity that renders it marketable nor it was packed in such a way to make it marketable i.e. airtight containers, hence it is not excisable-Mere fact that further processing calcium carbine can make it marketable would not render it liable to duty since excise duty is leviable on the goods in the form they are-Tariff Item 14AA(1) of the erstwhile Central Excise Tariff-Section 3 of the Central Excise Act, 1944. ....
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....nsidered as 'goods'-Section 2(d) of Central Excises and Salt Act, 1944. The department has given some instance of sale of the coil by M/s. Associated Power Equipment Pvt. Ltd. and states that there is manufacture and marketability and duty is to be paid by the respondents. A stray case is not very convincing in the light of a large number of case laws on the issue. We find that the learned Commissioner, in paragraph 15 of the impugned order, has stated that longer period could not have been invoked. We reproduce para 15 of this order since there is a clear cut finding that longer period could not have been invoked and this point has not been mentioned anywhere in the Grounds of Appeal. "15. It is also argued by the defence that their ....